Wedbush downgrades Silvergate Capital to Underperform, lowers price target to $4

As previously reported, Wedbush analyst David Chiaverini downgraded Silvergate Capital to Underperform from Neutral with a price target of $4, down from $9, as the company discontinued the Silvergate Exchange Network on Friday. The SEN is Silvergate’s main flagship product that previously was the key attraction for depositors to bring funds to the bank, and the firm believes the discontinuation of the SEN could signal that Silvergate may consider winding down its operations. Wedbush thinks a receivership/liquidation scenario is a distinct possibility and arrive at a liquidation value of $5 per share.